PAYROLL and 1099s
Payroll Services
We provide a full range of payroll services:
We can
provide calculations for paychecks for any number of employees in any payroll time periods. We can prepare the checks and/or
assist with direct deposit (ACH) transactions.
Payroll Tax Deposits-
The amount of taxes withheld from employees paychecks that are due on a weekly, biweekly, monthly, quarterly
or annual basis. Deposit requirements vary based on total taxes due.
Larger amounts of tax will, generally, require more frequent deposits.
We can prepare payroll tax deposits for payment either by bank deposit or electronic deposit.
These are the only two options for depositing payroll taxes, however amounts
less than $2,500.00 per quarter may be paid with the 941 tax return.
Payroll Tax Returns-
The Federal, State and sometimes Local governments require (typically) quarterly filing of returns reporting the gross payroll, withholding, etc and sometimes require payment with the return.
The typical returns we prepare are:
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941 - Federal Quarterly Payroll Tax Return
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940 - Federal Annual Unemployment Tax Return
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DR 1094 - Colorado Monthly or Quarterly Payroll Tax Deposit Coupon
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DR 1093 - Colorado Annual W-2 Transmittal Return
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UITR-1 - Colorado Quarterly Unemployment Tax Return
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Aurora, Denver, Greenwood Village and Sheridan Occupational Tax Returns
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Other states with similar versions of payroll and unemployment tax returns
W-2 and 1099 Forms-
The payment of wages, contract work, dividends and many other kinds of income must be reported on W-2
forms or any of several different 1099 forms with the IRS or Social Security
Administration. We also provide W-2 form and 1099 form preparation
services. These forms can be filed electronically with the IRS and Social Security Administration,
but it must be done through an intermediary.
Wage and Contract Work Payments
Whenever wages or other compensation are paid to an individual or company, the proper documentation must be obtained. In the case of an employee, a
W-4 form must be filled out as well as an
I-9
form. In addition, the employee's information must be reported to the state upon hiring
and it would be well advised to verify the social security number.
In the case of an independent contractor or subcontracting company, a
W-9 form should be obtained. Even if you think the company is a corporation and does not require a 1099 to be issued, you should still obtain one for your protection. You can be fined for failing to issue a 1099, even if you were told that you did not have to do so.
Who is an employee?
Before you can know how to treat payments that you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be: an independent contractor, a common-law employee,
a statutory employee, or a statutory non-employee.An employer must generally withhold income taxes, withhold and pay social security and Medicare taxes, and pay unemployment tax on wages paid to an employee. An employer does not generally have to withhold or pay any taxes on payments to independent contractors.
To determine whether an individual is an employee or an independent contractor under the common law, the relationship of the worker and the business must be examined. In any employee-independent contractor determination, all information that provides evidence of the degree of control and the degree of independence must be considered.
Facts that provide evidence of the degree of control and independence fall into three categories: behavioral control, financial control, and the type of relationship of the parties.
For detailed information, please see Section 1 of IRS Publication 15-A
Additional Employment Information and Forms:
Colorado Wage Order Number 23 (2007) (PDF)
Colorado Wage Order Number 22 (OLD) (PDF)
Colorado New Hire Reporting Info
Social Security Number Verification Page
General Liability Insurance and Workers Comp Audits
Many employers are required to provide information on a yearly basis for audits of payroll and subcontract payments. These reports are usually based on the past year's payroll reports and general ledger reports from
the bookkeeping. In addition, you may be required to provide certificates of coverage for all subcontractors. We perform many of these audits for our clients and can provide these services as a supplement to bookkeeping and payroll services.